If I enable Keep Music folder organized, will it fill in all the information on the songs, for example, artist name, album name, genre), stuff of that nature?
And, then it will make a Artist -> Album directory, correct?
The organization of your music in iTunes depends on the ID3-tags of the songs. You can let iTunes automatically add this information before (or after) ripping a CD.
If you enable "Keep Music folder organized", this hierarchy will be transfered to the folder structure in the Finder (inside the /Users/~/Music/iTunes folder), which is a very nice feature of iTunes. The structure will be: Artist/Album/Song.
"Keep music organized" has nothing to do with ID3 tag completeness. It will organize your music according to what has already been filled out in the tags, not do the filling-out for you.